Uber wants to outsmart surge pricing

The long-term goal of Uber is to use self-driving cars to mitigate the problem of limited drivers, according to NPR. But in the short term, the ride-hailing service is looking to machine learning to, hopefully, reduce the need for surge pricing.

Uber is using technology to help reduce surge pricing.

Uber

Surge pricing, which ups the cost of an Uber ride, kicks in when extenuating circumstances like inclement weather or a big event create high demand. Some drivers seek out these situations to make extra cash, but Uber says it hopes to solve such scarcity before it becomes a problem.

"Uber is always looking for ways to better predict supply and demand in a city," said an Uber spokesperson on Tuesday. However, surge pricing will remain for now because "it's the only way to ensure that passengers can always get a ride when they need one."

Update, 8:22 a.m. PT: Adds comment and clarification from Uber. The ride-sharing service does not plan to stop using surge pricing, but wants to reduce the need for it using machine learning.